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The Oil and Gas Index has been in a sharp selloff, as prices at the pump plummet. The chart of $XOI.X shows the clear markdown in the sector during 2014, and a retest of lows during the holiday-shortened November 28, 2014 session.


Teekay Offshore (TOO), the general partner of Teekay Offshore Partners (TK), announced on Friday that it has agreed to issue 6.70M common units to a group of institutional investors for proceeds of approximately $175M. The Partnership intends to use the proceeds from the sale of common units for general partnership purposes, capital conversion projects and future acquisitions of vessels. The news led to a bounce off of recent lows, even as the rest of the Oil and Gas sector moved lower.


A move below the November 28 closing price, coupled with a further markdown in the $XOI.X could push TOO to test October support again, and potentially to an extension to the $22.16 multiple-timeframe Fibonacci expansion.